On the bright side, the 5.46% wage hike is better than last year’s average of 5.10% at least. And it marks a second straight year that the average wage hike exceeds the 5% mark. For some context, the 2023 figure was only 3.80%. That being said, this is the first-round data and usually the later revisions will show a lower reading from what is initially presented. In 2024, the first-round data was 5.28% before being ultimately revised down to 5.10%.

USD/JPY is moving higher on the news here, up from around 148.63 to 148.91 currently. If anything, this won’t compel the BOJ to forcefully act in March and should put them off a May move as well.

This article was written by Justin Low at www.forexlive.com.